As a seasoned crypto investor with scars from the 2017-2018 bear market etched deep into my portfolio, I can’t help but feel a familiar sense of unease as I watch Dogecoin plummet once again. The recent whale movement of $59 million is a red flag that no one should ignore.
It seems that the value of Dogecoin could drop further due to a recent activity by large investors (whales), potentially leading to a mass selling off. The popular meme currency has already seen a decrease of approximately 18% within the past 24 hours, as part of the current downturn in the cryptocurrency market.
Dogecoin Price Could Drop Lower As Whale Moves $59 Million
The potential exists for the price of Dogecoin to decrease even more, given that a large-scale investor (often referred to as a “whale”) transferred approximately $59 million worth of Dogecoin (around 200 million units) to the Binance exchange, according to data from Whale Alert.
The consistent whale activity typically fosters a pessimistic perspective on a cryptocurrency’s value, since it often indicates that an investor plans to dispose of their coins. This sale might trigger substantial selling pressure on the popular meme coin, potentially causing further drops in its price.
According to CoinGape’s recent update, the value of Dogecoin (DOGE) has significantly decreased and may potentially fall further to around $0.20. This level represents a significant support point for the popular meme currency.
In a recent post on X, crypto analyst Kevin Capital expressed concern over Dogecoin’s potential drop to a certain level. He indicated that if the weekly closing price falls below $0.26, it would raise red flags for him. At present, he views this price decrease as a typical market correction.
The analyst also noted that the correction had been brewing in the charts for weeks. However, he suggested that this price decline is worse than expected thanks to the Fed’s hawkish stance and an imminent US government shutdown.
What Next For DOGE?
As a researcher delving into the world of cryptocurrencies, I’m keeping a close eye on Dogecoin, anticipating a potential bullish turnaround at some juncture. The insightful analysis from crypto expert Master Kenobi points towards this possible reversal occurring in January 2025, suggesting that the current bull run may persist for quite some time yet.
The analyst pointed out a possible comparison between the current situation and the 2021 bull run, when a crypto market crash similar to what happened in December 2020 occurred. The analyst highlighted that Bitcoin experienced a 30% decrease in value, while Dogecoin also mirrored this trend, falling by 55%.
Despite the widespread fear, these coins underwent a bullish turnaround in January 2021, soaring to record highs. Consequently, this trend set the stage for Dogecoin’s price to reach its all-time high of $0.73 in May 2021.
Given past trends, there’s a possibility that Dogecoin might bounce back to hit fresh highs by January. Previously, Kevin had suggested that the popular meme coin could dip to around $0.26 – $0.28, only to regroup and surpass its current all-time high again.
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2024-12-20 18:48